About Me

Compete, Yes, But Don't Breach Duty of Loyalty

Competition is favored in California. But agents (including employees) cannot divert customers to another employer while still in an agency / employee relationship. Employees are free to leave, but while they remain employed, they owe a duty of loyalty to their employers. The Court of Appeal upheld a preliminary injunction where a business seller, retained as "managing agents" of the sold business, breached the duty of loyalty by diverting business to a third party. The case is Huong Que v. Luu.